I started my career working for an export house in India and
hence had developed a keen interest in international trade early on.
However, with my current career in banking after moving to the United
States, the interest has increased manifold especially with the global
impacts of the Great Recession creating a universal consciousness around
creating a stable economic environment across countries. I wanted to share two articles as regards the economic facets
of global business.
The first talks about looking out for bubbles in the global business environment and the second lists out the trends of global inflation.A combined review of both is interesting to analyze because of the interrelationships between inflationary trends, interest rates and the financial markets and the delicate balances required to be maintained in order to prevent far-reaching adverse impacts.
http://www.bloomberg.com/quicktake/watching-bubbles/
http://online.wsj.com/articles/global-inflation-picks-up-in-april-1401875791
The first article lists out how the global rise in asset prices may be an output of the money pumped into the economy by the Central Banks of countries across the globe and discusses on whether this would be a bubble that would burst in a manner similar to the mortgage-backed securities burst of 2008, causing the Great Recession. It discusses on whether the Central Banks should consider increasing interest rates in order to reduce risky investments. The second article reports on how global inflation is picking up and how necessary it is in order to continue in the path of the global economic recovery. In this case, interest rates are not something that Central Banks would look to increase in order to encourage consumer spending. While I found both articles interesting and thought provoking, because of the intricate interdependence of economies across the world in terms of almost all aspects of business, the combination of both sets of information and how it might impact policy decisions of Central Banks around interest rates is even more interesting.
Further, the national economies have different types of economic systems such as market economy, mixed economy and command economy. The systems outline how decisions are made in each economic system. Hence, another thought-provoking as well as connected consideration is how the different economic systems adjust to these global trends and pressures to keep them going, despite their different mechanisms and ideologies.
I hope you enjoy reading this post and were able to enhance your knowledge of the current global economic and business environment a little further.
The first talks about looking out for bubbles in the global business environment and the second lists out the trends of global inflation.A combined review of both is interesting to analyze because of the interrelationships between inflationary trends, interest rates and the financial markets and the delicate balances required to be maintained in order to prevent far-reaching adverse impacts.
http://www.bloomberg.com/quicktake/watching-bubbles/
http://online.wsj.com/articles/global-inflation-picks-up-in-april-1401875791
The first article lists out how the global rise in asset prices may be an output of the money pumped into the economy by the Central Banks of countries across the globe and discusses on whether this would be a bubble that would burst in a manner similar to the mortgage-backed securities burst of 2008, causing the Great Recession. It discusses on whether the Central Banks should consider increasing interest rates in order to reduce risky investments. The second article reports on how global inflation is picking up and how necessary it is in order to continue in the path of the global economic recovery. In this case, interest rates are not something that Central Banks would look to increase in order to encourage consumer spending. While I found both articles interesting and thought provoking, because of the intricate interdependence of economies across the world in terms of almost all aspects of business, the combination of both sets of information and how it might impact policy decisions of Central Banks around interest rates is even more interesting.
Further, the national economies have different types of economic systems such as market economy, mixed economy and command economy. The systems outline how decisions are made in each economic system. Hence, another thought-provoking as well as connected consideration is how the different economic systems adjust to these global trends and pressures to keep them going, despite their different mechanisms and ideologies.
I hope you enjoy reading this post and were able to enhance your knowledge of the current global economic and business environment a little further.
